XML 290 R17.htm IDEA: XBRL DOCUMENT v3.22.0.1
Financial income and expenses
 12 Months Ended
Dec. 31, 2021
Text Block [Abstract]  
Financial income and expenses
7. Financial income and expenses
 
            
    2021
$m
            
    2020
$m
           
      2019
$m
  
Financial income
            
 
 
 
            
 
 
 
           
 
 
 
Financial income on deposits and money market funds
            
 
2
 
            
 
2
 
           
 
3
 
Interest income on loans and other assets
            
 
6
 
            
 
2
 
           
 
3
 
 
            
 
8
 
            
 
4
 
           
 
6
 
Financial expenses
            
 
 
 
            
 
 
 
           
 
 
 
Interest expense on external borrowings
            
 
109
 
            
 
102
 
           
 
78
 
Interest expense on lease liabilities
            
 
29
 
            
 
37
 
           
 
41
 
Capitalised interest
            
 
–
 
            
 
(1
) 
           
 
(5
) 
Unwind of discount on deferred purchase consideration
            
 
1
 
            
 
1
 
           
 
1
 
Other charges
            
 
8
 
            
 
5
 
           
 
6
 
 
            
 
147
 
            
 
144
 
           
 
121
 
             
Analysed as:
            
 
 
 
            
 
 
 
           
 
 
 
    Financial expenses before exceptional items
            
 
147
 
            
 
130
 
           
 
121
 
    Exceptional financial expenses (note 6)
            
 
–
 
            
 
14
 
           
 
–
 
 
            
 
147
 
            
 
144
 
           
 
121
 
All financial income relates to financial assets held at amortised cost.
Interest expense on external borrowings and unwind of discount on deferred purchase consideration relate to financial liabilities which are held at amortised cost. Other charges includes bank charges and
non-bank
interest expense.
In 2021, $1m (2020: $3m, 2019: $13m) was payable to the IHG Rewards loyalty programme relating to interest on the accumulated balance of cash received in advance of the consumption of points awarded. The expense and corresponding System Fund interest income are eliminated within financial expenses. Financial income includes $2m (2020: $nil, 2019: $nil) of other interest which is also attributable to the System Fund.
Capitalised interest relates to the System Fund. There was no interest capitalised during the year (rate used for capitalisation of interest in 2020: 2.9%, 2019: 3.1%).
Net interest payable on a frozen GAAP basis as calculated for bank covenants was $133m (2020: $111m, 2019: $99m). Further details are provided on page 190.